Many China-watchers are confused by the smoothing of its QY/Y reporting methodology. When economic performance is viewed in conventional Q/Q terms, it is quickly apparent there has never been any danger of a hard-landing.

Monday, 03 September 2012 Job cut have serious problems. China's manufacturing activity fell to its lowest level in more than three years in August as the global economic slowdown continues to weigh on the world's largest exporter, The final reading of the British banking giant's closely-watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, slid to 47.6 last month from 49.3 in July, HSBC said in a statement. This was the lowest since March 2009 and marked the tenth consecutive monthly fall, the bank said. It chimed with the official PMI figure released Saturday, which hit a nine-month low of 49.2. HSBC economist Qu Hongbin said the figures showed China's manufacturing sector faced "intensifying downward pressure" and urged the government to step up easing measures. "China's exporters are facing increasing difficulties amid stronger global headwinds," he said, adding new export orders contracted last month at the sharpest pace since March 2009 while employers cut jobs at the fastest rate in 41 months. I thank you Firozali A.Mulla DBA

OH Thaaat Chimerica. Zbigniew Brzezinski's "Strategic Vision" is so hopeful. If only China and Japan and Russia, Turkey and Iran will cooperate! According to Zbig; if only all of that; we would have a snowballs chance in hell of making it through to peaceful growth! And then here comes Israel's (ahem) enthusiasm.

Meanwhile back at the ranch...In America, the Republicans have no intention of "Structural change" which they perceive as taking something away that has always belonged to them: The money their uncle military-industrial-complex-weapons-supplier got paid out of thin air with for the last two generations. They are affronted with having grown ignorantly rich by the sweat of their own brow; and don't you dare imply that "you didn't do that."

Condeleeza Rice is a point of light, light years away from the body of mainstream, and conservative Republicans.

The Dukes of Hazard Republicans are in charge and "we're gonna chase our tails, perpetuating an unworkable work ethic, and racist income distribution, if it kills everyone dammit.

Hard to predict the future, best to observe the present and let the future fend for itself.

China is slowing down as stimulus (lending) has reached the point of diminishing returns. Slowdowns are seen in stalwart Chinese heavy industries such as steel-making and ship building, see below. There is diminished internal demands for Chinese capital goods including real estate: adding more credit adds to credit costs that have become excessive.

Chinese borrowers are having problems servicing and rolling over legacy debts. China privatized forex trading in the country and must pay now as shadow banking money costs are astronomical. Plutocrats have borrowed trillions of yuan from loan sharks and cannot repay by way of returns but must be bailed out: these plutocrats are too big or too well-connected to fail. Because of- or as a response to this, Chinese plutocrats who can are fleeing the country taking their (stolen) gains with them.

Peak Natural Resources: China's energy consumption is equal to the US's but the country produces one-half the GDP as US: China is structurally inefficient and dependent upon fuel imports that it must pay for with foreign exchange. It has built a Victorian coal-based export production enterprise that is subsidized by capital flows (loans) from overseas. As these flows dry up the effects are being felt first in capital-intensive heavy industries then in real estate. Keep in mind all industry requires constant debt subsidies. China borrows against the accounts of its overseas customers (why its reserves are forex).

Real estate has been the place for debts to be laundered into circulating money. Problem is ... there is insufficient circulating money. If enough is added to satisfy all those who want it (and make a measurable difference) there is too much increase in associated internal debt (the same dynamic that has destroyed Greece and is unraveling the entire EU).

Finally, China is destroying the world's atmosphere with coal- and diesel based carbon emissions. If it does not stop there is the likelihood of military action taken against China to destroy its carbon-spewing infrastructure: no joke on global atmospheric heating, it's coming like a bogeyman to rip your face off ... and those of your grandchildren.

Many countries are worrying over nothing. In fact, the CCP is loaning another 4 Trillions USD to local governments to improve their poor infrastructures. There will be enough shared prosperity around world after considering their multiplying effects.

I agree with your views expressed. We are indeed interwoven deeply in trade, economy and increasingly other areas. As the other Economist article on which this one is based stated: “It (China) is the biggest or second-biggest trading partner for 78 countries”, including with EU, ASEAN, the US, Japan, S. Korea, Russia, Australia, Brazil, India, Africa, Canada, Mexico,…..

The impact and ramification to peoples’ lives are beneficial and substantial. Over the past decade since 2001, about 100 million jobs are created in China and I believe some big number of jobs are also created outside of China as a result of trade and economic development.

People unhappy with China for one reason or another should keep in mind that China is still basically a poor country, with a 2011 per capita GDP of about $5,500 (market exchange rate) as compared to say the America’s $47,200. Lots of catch up and patch up work remains to be done on infrastructural and social development, meaning more business opportunities waiting.

And China is not without big problems, domestic and foreign, in its path of economic development, but its people have enough confidence in the government to steer clear and through and that's what makes the living all the more challenging and worthwhile.

China’s contribution to the world GDP is about 10% in 2011, considering Chinese population being 19% of the world, it means China should double its contribution to about 20% in some future to be just on the par with the world norm.

That’s enormous task requiring multi-national efforts but also tremendous opportunity for all to participate and compete. I am thus bullish for the economic future of China, USA, EU, ASEAN and indeed of the rest of the world.

But but but but... I thought the West was engaged in a plot to contain and encircle China (cf nkab comments passim)? How can you be bullish for the future in such a situation? Surely a war is the only answer. A defensive war, naturally, to protect China's legitimate territorial interests and safeguard its peaceful rise. Such a war would entail the unfortunate but necessary destruction of the US puppet states Japan, the Philippines, Vietnam, Malaysia and perhaps a couple of others. But small nations need to learn their place in the world, and if these countries are foolish and reckless enough to situate their land masses so close to the sacred nine-dashes line, they must bear the consequences. Right?

Re: Mike Hoy
The predictable reply of the perennial optimist. Ask yourself the simple question, who ran/runs the show on this planet, surely not the realists and by inference pessimists? No, the mess we are in is the creation of the optimists, who keep on telling us everything will be fine if we dig the hole they got us into in the first place even deeper.

It will be a domino effect,not only between China and its trade partners
.In my view,Brazil and Australia will get a more impact than that chart show because it won't be that only China's demand will slow down during world economic recession.

Beats me, we call ourselves an intelligent species, but use an economic system based on the crazy idea of FOREVER BIGGER AND MORE in a world of finite resources and an ever growing world population. With ensuing human induced climate change a real threat, we should all strive to adopt a sustainable world population and get rid of an economic system that is based on the Easter Islander mentality.

@compal, you're right but it's not enough just to criticise our current economic system. You have to provide specifics of something better. "Reducing population", is a laudable goal, but it's not the basis of a new economic system.

We can start by rearranging distribution systems so that the goods and services produced globally are more equitably spread among the world's population. Unfortunately, we need strong governments to do this because the private sector won't relinquish its privileges or power easily. (That's a topic for another time).

With the rise of 3D printing, resource scarcity diminishes (at least for solid goods). When enough of the population has access to this technology, currencies will begin to be obsolete - lessened need to exchange money for products. Without the need to transport goods over vast distances, fuel use can decrease and prolong the life of those deposits.

There's a name for the "strong governments" that could do this. Can you guess what it is? You want to see a planetary cat-fight? If a a system of "strong governments" somehow gets established across the planet watch the ensuing struggle. the technical name for this struggle is "world war".

Your second paragraph alludes to the real solution of the problem which is the introduction of new technologies and ways of thinking - to find those new ways, tens of thousands of ideas will have to be - and are being - invented and tested by individuals and hundreds or even thousands of organizations, profit and non-profit, across the planet. No "strong" government will want to see this take place because it can't begin to control the process much less predict or determine the outcome. And such "strong" government will be all about "control", and dividing up the spoils according to its own system of loyalties.

It is an old habit, but we seem to always talk in absolute terms when it comes to economic forecasting of great nations. IF: This THEN: Concrete linear functions occur that have absolute impacts.

ONE: The great nations of this world have become complex machines with indeterminate outcomes (think clouds / storms / quantum theory. Complexity does not breed axiomatic outcomes.

TWO: There is no singular event that creates a singular impact. That is 19th century logic applied to 20th century business structures in a 21st century matrix.

POINT: Instead of attempting to PREDICT ABSOLUTES, develop more advanced logic models that identify reactive options to events that create complex economic waves. In other words get a feel for the pulse by embracing the noise.

Economist, are there statistics on countries all over the world how to move the share of labor in GDP? I think the share of labor falls. This is more important than the indices and indicative of the balance between consumption and capital accumulation.

China has assumed some sort of global economy engine status with Europe. India remains absent. The US really is the anomaly in time or at least China's timeline, a single state that will likely mirror China in absolute power across many indicators beyond the foreseeable future. But, all these giants are intimately interlinked to a degree that far exceeds any historical precedent -- never before has so many of the world's people shared a common destiny. The current Chinese negative PMI reflects its connection to Europe and the US.

Europeans make a big mistake when they compare their own exports with those of the USA. The nature of US China trade is completely different from Europe's China trade. Europe exports finished products. The US, on the other hand, exports mostly farm products and raw materials that China requires even during a crisis.

To keep from going further into recession in the West, the economic engine of the world, (China) needs to continue to run at full capacity.

Once it drops below idle speed, no one will have enough money to buy all those U.S. Treasury bills, which allow reckless government overspending to continue. Insolvency.

Whether you love communist China, or hate communist China, we are joined at the hip with them!

I realize that some people still live in the Cold War, and China is the big enemy, blah, blah, blah. If you haven't been there lately, capitalism is thriving! It's easier to start a new business there and build a new factory - than it is in many U.S. states and European nations.

The 1930s is remembered as a time of Depression. However, there are many
inventions and high technology from that very time period. The Empire State
Building was built during the Great Depression. The Golden Gate Bridge was
built during the Great Depression. Television was invented during the Great
Depression. Radar was perfected during the Great Depression. Though
fortunes were lost during that time period, fortunes were made during that
time period too.

As for the countries you mentioned:
India - It has lots of potential, but corruption and political paralysis is killing its rise.
Russia- A joke of a country. Only two major cities, lots of peasants by design. Strong
man mentality in a 21st Century setting, 16 time zones, bordering with three
continents with lots of natural resources. What do you buy made in Russia?
Japan - Even in a funk, Japan provided the world with Sony Vaio, Toshiba laptops,
Acura NSX, Toyota Prius Hybrid.
Indonesia- Steady Safe and Perigrine Bank should explain to you what Indonesia is all about.
Saudi Arabia - The bedouins don't participate in the Sheiks accrued wealth. It is a classical
few hording all of the resources, and calling the resources as national (as in
for all the people).
Australia - An awesome country with great potential. Parts of the Outback could one day
be like Las Vegas when technology and lower costs permit it.
South Africa - Has potential, but the power that be won't let it happen.
Brazil- Hahahahahahahahahahaha. They haven't even finished Trans Amazon Highway
started in the 1970s. They haven't completed Angra III Nuclear powerplant from
the 1980s. Rio de Janeiro is roughly 3/4 favelas (shanty towns) . Just look at
Google maps (all favelas clearly labeled). A "Democratic nation" where voting
buying (Mensalao) is being sanitized for public consumption in court right now.
More natural resources than 10 countries combined, yet it is China with limited
resources and many fold poorer population that rose to 2nd spot in the world
when Brazil was much higher in the global standing. Shouldn't it tell you something?

This is an eye opener for me and kudos to the Economist for the article and the chart.

I am not technical enough to discuss the finer points made in this article. But if the “Sinodependency” is of any such significance to the world of trading as delineated in the article, then it's to “everybody’s” interest to see that this adolescent China of trading not to stumble and fall on a bad cold, right?

Then why all this containment and encirclement of China, with so much sabre rattling right in front of its doorstep, I mean the apparently West (the US) led or instigated provocations and military exercises here and there in South China Sea, East Sea and Asian Pacific in general? (With two new ones just launched, a joint US- S. Korea exercise in S.K. involving over 80,000 soldiers and a joint US- Japan exercise off Guam with warships and fighters including F-22 sorties.)

Don’t they know such maneuvers carry serious repercussions and are detrimental to China's health to fight or nurse the economic cold China appears to be catching already?

Remember, it’s just an adolescent trading nation (as the Economist inferred) and perhaps just a kid in military prowess (relative to the West).

Most of economic growth comes from massive government spending for the reconstruction of the Tohuku region hit by the earthquake and tsunami. Many economists forecast so-called reconstruction effect will fade out at the end of this year. I wonder how Japan will deal with low growth again from then...

It's obvious that the Brazilian economy would not be very affected with a Chinese slowdown. Despite the common sense around the world, less than a half of Brazilian exports are commodities, and only a fraction of that goes to China. I'm not even a little bit surprised to read that Brazil's growth is not deeply related to China. Actually, I used to be startled all the times that The Economist said that Brazil and China had an umbilical and crucial link! Not true...

Name one global product "Made in Brazil" that is ubiquituous and can
be bought in U.S., Canada, Australia, Germany, UK, and Japan.

Brazil is commodities. period.
Embraer and Taurus can only exist because the technology transfer &
partnerships from Piper, Aermacchi, Rolls Royce and Beretta respectively.
If China start growing again, Embraer will be in trouble. The Chinese
have eyes towards challenging Airbus and Boeing. Their home grown
aviation industry has a whole family of Airplanes lined up.

The emerging Brazilian middle class is just a big credit bubble, and due
largely to government stipends from Lula's government In fact, I challenge
anyone here to find out a single African Brazilian CEO and or CIO in the private
sector in Brazil. Brazil being 51% Black (of all shades) cannot be considered a
serious country if more than half of its people is excluded from true upward
mobility. Add to that the famous Custo Brasil (Brazil Cost) that add pointless
hefty taxes and other burdensome bureaucratic red tape, and you can clearly
see that Brazil's growth was due to commodities boom with China,
clever marketing to the unsuspected investors, and a clever propaganda
piece on its potential (including the recent Pre-Salt discoveries) . Recently,
some major Brazilian Magnate has lost a big chunk of his wealth because
investors saw it was all smoke and mirrors. Contrast that with Warren Buffett
who has made money for his investors from the get go.

Anyway, I can name many global brands made in Taiwan, and made in South Korea.
Stuff that one can buy everyday, branded and high tech. If you believe in Brazil,
ask yourself the following: How come a country with such mega size, abudances
of resources, half of the population European and Asian descendants cannot
produce a single stuff that you can go on your local store and buy it. Dig deeper,
and you will find out why, and no it is not outside forces or global hating on Brazil.
It is the Brazilians themselves.

Sir, I generally agree with you: Mssr J. Diamond (Guns, Steel, Germs) missed the mark by a wide kilometer: Culture is the driving force and the reason the ancient Greeks dominated their world (export of repute: olives). I think N. Korea probably has more resources than those Greeks did...yet NK remains deeply impoverished and helps to define "4th world" better than any country but Haiti. Both receive largess from the West, though for different reasons. Yet the results are similar same.

For the same reason, Mexico, with her abundant resources, cannot escape the pull of her culture’s 3rd world gravity—I have seen this first hand in my travels and discussions with them. Culture matters; it is Personal Responsibility, writ large. Resources? Do not matter as much as they are credited.

A nation may be blessed with abundance of resources, but if they're held back by their own limiting culture & expectations, then resources matters not. And the country will struggle until they do change. Interestingly, the Greek culture clearly changed, didn't they? There have been natural and enforced changes in cultures over the centuries

The Russians did what no one thought possible: they created a lazy (East) German--they changed the culture. "You pretend to pay us; we pretend to work" was part of that culture.

When The Wall fell, an entire generation of (east) Germans had to be inculcated back into the German culture and it's worked out pretty good ever since.

Look to America's subcultures for more proof. Why do some excel and others--regardless of the monies thrown at them--continue to suffer and decline? “You can pull the man out of the ghetto, but the trick is to get the ghetto out of the man” is a way of saying cultural inculcation can go deep; something must be embraced and something must be let go. This is a dangerous conversation in your American: that the knee jerk reaction is often the charge of “Racism !”

It should go without saying that ANY ONE OF US and our culture would also fail within the context of the well-intended “help” given American subcultures and within the East German scenario.

Much of that culture is continental Portuguese, but Portugal has yet to produce the technology, let alone the conditions that has allowed Embraer to exist. Embraer really is exceptional -- the airplane manufacturer from the third world is the world's third largest commercial producer. Brazil also has substantial ethanol experience. There's a lady running PetroBras, well there's a lady running Brazil. Brazil will step up, you'll see

Embraer Regional Jet aircraft, exported from Brazil and used in many countries around the world, including all over the U.S., right under the nose of Boeing. And would easily be used in more countries if aircraft markets were more open.

This is not a commodity. It's a product comprised of a complex arrangement of systems, requiring advanced engineering and complex materials.

Piper and Aermacchi do not manufacture any products similar to Brazil's E-jets. NONE.
Aermacchi does not even have a passenger division. Piper does not manufacture jets, only turbo props.

Rolls-Royce?

According to your logic Boeing needs "technology transfer" from GE and Rolls Royce as well when both are partners/suppliers just the same way Bosch is a supplier to Mercedes.

Chinese jet? Risible.

China has currently two jets projects: ARJ21, a project with all tooling stolen from Douglas, completely obsolete where the wings were redesigned by Antonov to improve it i.e. ZERO chinese engineering and the C919 which is a decade or so behind schedule and flunking static tests left and right. China is trying to bribe Bombardier to cooperate on it which might not happen meaning the project will flunk i.e. you can't steal technology forever and think you will get anywhere.

"Anyway, I can name many global brands made in Taiwan, and made in South Korea."

Putting South Korea and Taiwan in the same boat is risible: South Korea started from absolute ZERO while Taiwan robbed China of all its gold reserves in 49 and inherited an island the Japanese left in fairly good shape. South Korea beats Taiwan everywhere, top to bottom. Not even funny.

Name me ONE Taiwanese car manufacturer. Name me ONE Taiwanese brand like Samsung. Asus sells crappy computers that break within months. They can't compete in areas like TVs and white goods. They are losing market share left and right to guess who? Samsung!

HTC? Puh-lease. Acer? All of these were started by manufacturing computer to Uncle Sam and then started shamelessly copying their designs. You admitted yourself that Taiwan's high tech park was founded with US and Japanese money. When was the last time Japan or the US opened a high tech park in Brazil? The US for one would never do it since Brazil is a little bit more difficult to control than Taiwan, a puppet it controls and activates when convenient (piss off china).

If Taiwan was this heaven on earth you like to claim, Apple wouldn't be the most valuable company ever, Foxconn would. Well, it just happens that Taiwan has no charisma and can't develop high end brands and only competes on price, like China. There's a place for this kind of competitor and no shame in being in that end of the market.

"How come a country with such mega size, abudances
of resources, half of the population European and Asian descendants cannot
produce a single stuff that you can go on your local store and buy it."

And which Australian product can you buy at your local store? Vegemite? Meat pies? Couldnt find any last time I checked. Here's where you'd say UGG boots but would invalidate Havaianas.

According to your crackpot theory Australia would be worse than Brazil, since they even speak the international language while Brazil doesn't and still can't crack your "brand" test.

Black CEOs?

What about talking about Taiwanese CEOs of Global Companies? I can count several Brazilian CEOs in worldwide companies but no Taiwanese CEOs in Western Companies. According to you that should mean Taiwan is "bad" and Brazil is "good". What about native Taiwanese CEOs i.e. non-Han? Oh wait, non-Hans have been exterminated in Taiwan, thanks to one of the most vile and incompetent dictators in history, General Cash My Check, whose party still lives on to this day, cutting deals witch China even when they are not in power, undermining the entire democratic process ( a foreign concept if there was ever one in any chinese related country.)

As for Brazil, I am afraid you might be right in most of what you say, but not all of it.

You said: "What about talking about Taiwanese CEOs of Global Companies?"http://en.wikipedia.org/wiki/Jen-Hsun_Huang
Not to mention the co-founders of Youtube, etc.
Ooops...I forgot to mention that Yahoo's founder family come from Taiwan.
That would not qualify according to your carefully orchestrated book, would it? ;-p
Now for Brazil:
Brazilians hate free enterprise, entrepreneurship, and visionary people that
are not connected to the corrupt power grid.
Else,
Santos Dumont would have been funded in his commissioned airplane (1906), and
Brazil would have produced a 100% private aircraft company before the 1920s. Like
Fokker aircraft company that started in Dumont's time period.
Having said that, it was only in 1969 that EMBRAER (a government owned company)
started. Talk about lack of vision beyond comprehension!
Piper and Aermacchi transferred technology to Brazil, and that is undisputed.
Brazil had no technology expertise in composite materials, wings, avionics,
fly by wire technology, and airframe construction. Because EMBRAER was
government owned, it had somewhat of a pull with countries and companies
that had that technology to transfer in exchange for some mega funds
individuals don't have access to (i.e. government funding, etc).
Rolls Royce had to transfer some technology to EMBRAER else how are
you going to place its engines on an incompatible airframe and wing mounts?
Bottom Line: Brazil says to budding entrepreneurs: "Nao tem Campo",
"Voce esta pensando como Gringo", "Nao vem que nao tem", "O Doutor fulado
de tal disse nao." and many other B.S. discourses that amount to no opportunities
for you because you are not connected to the corrupt powergrid.
Meanwhile, it wants to be taken seriously as a country when the government
does a half ass botched job and appropriate other countries and companies
technologies to say that they are rising.
HAHAHAHAHAHAHAHAHAHAHAHAHAHA......... Fala otra piada, please.

Look at your double standard: if Jerry Yang, an AMERICAN, has Taiwanese heritage, you claim Yahoo is somewhat "Taiwanese" (same for youtube).

So, which great sites started from Taiwan? ZERO.
Which started from Brazil? ZERO.

But we had great sites started by Brazilians and Taiwanese descendants that were funded in America (Facebook and Yahoo), Instagram as you love to proclaim.

And the dude from Nvidia graduated from where? Surprise, surprise! Taiwan National University? NO! Stanford! If Taiwan was such a fertile ground for startups, wouldn't he instead have graduated from a Taiwanese university and stayed in Taiwan? But he didn't, he went to America.

What this proves is:

-America makes no distinction over where an idea came from. That's why it is winning the game and that is why it will ALWAYS win the game, specially against dictatorial crapholes like China
-If Taiwan was this great place to do business, NVidia would be Taiwanese
-If Brazil was this great place to do business, Facebook would be Brazilian

So your point is completely MOOT.

In fact, if there's one thing that Taiwan is very lucky about (well besides inheriting Japan's infrastructure and educational system, and besides stealing all China's gold reserves in 49 and billions of dollars from the US through Lend Lease) is to have free access to America. There are as you know (and probably are a member of) thousands and thousands of Taiwanese families that migrated to America and did very well for themselves. The same is somewhat happening with the Chinese haigui although most of them are princelings from the CPC i.e. no meritocracy. But let's set that aside for a while.

And your claim that Rolls Royce somewhat "gave" and "helped" Embraer to have a leg up is stupid. I mean, let's see. You think that if Rolls Royce is SELLING turbines to a manufacturer it would at least collaborate to make the bloody thing work on a new airframe, wouldn't you say so? Why wouldn't they NOT help a potential customer to succeed? You seem to think that this is somewhat "unfair", and the only reason why Embraer might have succeeded.

If that's the case, tell me, how come Taiwan doesn't have a jet manufacturer?

If it is so high tech and advanced it would clearly have something going you'd think right?

Oh wait, it doesn't. So, according to your own judgement Taiwan would be a craphole.

"Piper and Aermacchi transferred technology to Brazil, and that is undisputed."

This is akin to say: Bosch transferred technology to Mercedes, hence you can't deny that Mercedes has no merits whatsoever and can only thank Bosch for its success. Nobody saying Piper didn't, but to extrapolate and infer that Embraer developed nothing is completely retarded, and you know it.

James, Aermacchi and Piper DONT HAVE PRODUCTS IN THE SAME SEGMENT AS THE E-JETS, how many times do we need to hammer that into the thick nongmin skull of yours?

Even if they learned a lot from Piper and Aermacchi, which is the case, they had to create their products from scratch.

So, are you saying Taiwan had expertise in micro processors, hard drives, optics and what not?

Taiwan started as a mere subcontractor. Last time I checked Intel and AMD are American companies, same for NVidia who by the way was founded by 2 other American guys i.e. you can't claim it is Taiwanese at all. True, Taiwan has success in foundries and memory and other lower end stuff, but it stops there.

It had limited success and now nibbles at the very lower segment of the market: the price sensitive segment. Taiwan is not a country that people feel friendly towards (you might do some soul searching about that) and hence it has a very uphill battle towards making brands that compete on anything other than price.

Wings? Have you ever looked at the wings of a piper and the wings of a E145?
Are they similar AT ALL?

"Rolls Royce had to transfer some technology to EMBRAER else how are
you going to place its engines on an incompatible airframe and wing mounts?"

Just proves you know jackshiat about what you are talking about, since Embraer first family of jets didn't have wing mounts, turbines were placed on the back.

Just like the corrupt, thief, assassin, mass murderer Generalissimo Cash My Check it seems you have a lot of trouble dealing with anyone with an opinion different from yours. Tough luck.

Go ask Bo Yang, who spent 10+ years in jail for writing a book called The Ugly Chinaman and making a charge about the KMT what Taiwan's real motives are.

James:"How come a country with such mega size, abudances
of resources, half of the population European and Asian descendants cannot
produce a single stuff that you can go on your local store and buy it."

Chinaski: "And which Australian product can you buy at your local store? Vegemite? Meat pies? Couldnt find any last time I checked. Here's where you'd say UGG boots but would invalidate Havaianas."

And also, which Taiwanese car company will you enlighten us with?

I mean, if you put Taiwan in the same boat as Korea (ludicrous) you certainly will be able to name brands like Hyundai but made in Taiwan?

And if Taiwan is so brand friendly and innovative it will surely have brands in the top 100 ranking right? I see Samsung at number 55, but where are the Taiwanese brands? What, are you going to claim that Ping An, Baidu, Bank of China are Taiwanese now?

Your argument that Taiwan is this heaven on earth is full of holes.

Your arguments about Brasil are normally very right, except about Embraer.

So, do us a favor and stop embarrassing yourself and Taiwan and focus on doing what you do best: slicing and dicing Brazil's unfortunate "culture".

Just to get things right: in its beginnings, Embraer built under license Piper lightplanes and an Aermacchi military trainer

In the 80s, as a partner to Aermacchi, it helped develop and built part of an attack/fighter plane which is still used by the air forces of Brazil and Italy. And that's the extent of cooperation and TT transfer Embraer has had from these companies.

It certainly learned from these partnerships. But it is obvious Embraer has its own design and engineering expertise — it has designed and built commercial planes far bigger and more complex than anything Piper has ever done. And has exported them worldwide.

As to Aermacchi, it doesn't make commercial planes, as @Hank C. notices. And Embraer's current military line has nothing to do with Aermacchi's — they just target different niches.

I post this information to help The Economist's readers get their facts straight. The author of the original comments on Embraer — a notorious Brazil-obsessed troll that tries to ruin any serious debate in TE's forums— is evidently beyond any enlightenment effort.

I think the impact is a lot more than stock market. Here are few more:

Every year, there are more than 80,000 students come to U.S. as undergraduate or graduate student and paying full price. Let’s estimate $35,000 tuition and another $15,000 for living expenses, so $50,000 times 80,000 student for a total of $4,000,000,000, if you add 4 to 5 years, that is 20 to 25 billion dollars for U.S. alone. Think about all the other countries.

I saw somewhere in the newspaper that 25% to 40% of luxury goods, such as Gucci bags, LV bags, BMW, MBZ cars, etc are brought by Chinese. I was in Paris in a LV store, they set a limit of only 3 bags per customers, a girl asked me to use my name to buy more LV bags, because it is cheaper in Paris than Beijing. It is significant amount money involved.

Just look around the expensive home market around the world, such as San Francisco, LA. New York, I was in Vancouver, Canada and people told me Chinese are jacking up the prices of real estate. Just ask the real estate agent around the world, in France, U.S., U.K., Canada, etc…. We are talking billions after billions….

The biggest impact may be the corrupted government officials and their families, most of them have off-shore accounts in Swiss, Caribbean Islands, Hong Kong, Singapore, and may other places, in the billions after billions. The figure is very large, may be tens of billions.

Another big impact may be the tourist industry. Go to Harrods in London, or Macy, Nordstrom in U.S., and you will see lots of Chinese customers. Go to some of the famous tourist traps you may see the same.

FYI, I read somewhere that currently there are about 150,000 Chinese students studying in the US, followed by Japan with about 100,000. UK, Australia, France and Germany with from about 70,000 to 40,000. Also, there are close to 300,000 foreign students studying in China.

Also, for the first half of 2012, Chinese business invested $42.2 billion to foreign countries (non financial), a 52.8% increase compared to same period last year, albeit China is still learning the rope of the fine art of investing, paying a lot of tuitions so far, I am afraid.

Heard this tidbit the other day. China's exports were expected to rise over 11% in June but instead only rose just 1%.
Domestic loans to inflate GDP also missed expectationsnearly 50% lower than estimates.

I once read a story about Li Ka-Shing. Perhaps it said a lot about the Chinese mindset.

I don't know if this story is true or not. (For those not familiar with Li: Li was the richest man on earth right before he lost the title to Bill Gates. He was a dock-hand in Shanghai who went on to create the biggest shipping empire - Onassis, while more famous, did not even come close.)

Anyway, here goes the story:

Li and his wife were visiting NYC and were staying at the Waldorf Astoria. A reporter ran into Mrs. Li in the elevator and asked what is in the brown paper bag.
"Bagels" she replied.
"Don't they have bagels right here in the hotel?" He asked.
"How much do you think they charge for a bagel in the hotel?" she asked.
"Well, a lot more for sure!" He replied.
"Well, how do you think Li become the richest guy in the world? By watching his money carefully!" She replied.

Personally, I don’t believe this story is true. Staying at the Waldorf (keeping up appearance) while minding pennies is in tune with the Chinese mindset. But Chinese are a lot more low-key and humble than the story’s Mrs. Li.

True or not, it is a good lesson about waste and being mindful of the cumulative effect of little things.

The story reflected typical Chinese saving metality, and different value than the western (American) people. Saving is a good habbit of Chinese, Chinese certainly should learn from American spending Crisis!